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POLICING VIDEO CONTENT ON YOUTUBE, FACEBOOK AND TWITTER - Platforms' New Efforts to Block Offensive Clips Explained - Meredith
POLICING VIDEO
CONTENT ON
YOUTUBE, FACEBOOK
AND TWITTER
Platforms’ New Efforts to Block
Offensive Clips Explained
JUNE 2018
Paul Verna
Contributors: Annalise Clayton, Sean Creamer
POLICING VIDEO CONTENT ON YOUTUBE, FACEBOOK AND TWITTER - Platforms' New Efforts to Block Offensive Clips Explained - Meredith
POLICING VIDEO CONTENT ON YOUTUBE, FACEBOOK AND TWITTER:
 PLATFORMS’ NEW EFFORTS TO BLOCK OFFENSIVE CLIPS EXPLAINED
YouTube, Facebook and Twitter have faced a deluge of marketer objections over offensive videos and other
problematic content on their platforms. In the past year alone, these services have found themselves at the center
of controversies over everything from live streamed suicides to videos that promote terrorism to racist tweets from
celebrities and others.

These incidents—combined with a backlash over a                  WHAT’S IN THIS REPORT? This report explores how
range of related issues including promoting fake news,           YouTube, Facebook and Twitter are policing user-uploaded
providing a forum for abusive trolls, influencing the 2016       video to block content that violates their guidelines.
US presidential election and misusing customer data—             These platforms have recently stepped up their efforts
have put the platforms on the defensive.                         to promote brand safety in the wake of scandals relating
                                                                 to offensive content and data privacy, which in turn led to
■■   Over the past few months, each platform has taken           ad pullbacks.
     steps to beef up security and promote brand safety,
     particularly around video. These efforts have involved a
     combination of human monitors and machine learning
     analytics—with an emphasis on the latter, given the
     scope of the issue.

■■   The companies have also taken steps to provide more             CONTENTS
     transparency to advertisers, regulators, users and
     anyone else wanting to know how the platforms deal          2    Policing Video Content on YouTube, Facebook and Twitter:
                                                                      Platforms’ New Efforts to Block Offensive Clips Explained
     with troublesome content.
                                                                 4    Brand Safety Under Threat
■■   There are indications that these companies are making
                                                                 4    YouTube
     progress in beating back the tide of offensive content
     through improved algorithms and a sharp focus on the        9    Facebook
     issue, but most experts say no platform will ever be        12 Twitter
     100% safe as long as it traffics in user-generated media.   14 Brand Safety: A Shared Responsibility
■■   Despite ad boycotts, public outcries, regulatory scrutiny   14 Key Takeaways for Marketers
     and punishing media coverage, the brand safety issues       15 eMarketer Interviews
     that have plagued these platforms have not had an
                                                                 16 Read Next
     apparent effect on their bottom lines or share prices so
     far. Marketers continue to see value in advertising on      16 Sources
     these platforms.                                            16 Editorial and Production Contributors

      POLICING VIDEO CONTENT ON YOUTUBE, FACEBOOK AND TWITTER                         ©2018 EMARKETER INC. ALL RIGHTS RESERVED   2
POLICING VIDEO CONTENT ON YOUTUBE, FACEBOOK AND TWITTER - Platforms' New Efforts to Block Offensive Clips Explained - Meredith
YOUTUBE’S VAST VIDEO LANDSCAPE

     2,400                                                         Amount of
                                                                   video uploaded
                                                                   every minute of
                                                                                                                                                  KEY STAT
                                                                                                                                                  The amount of video
     MINUTES                                                       “real” time*
                                                                                                                                                  that passes through
                                                    2018
                                                    2017
                                                           1996
                                                           1995
                                                                  1974
                                                                  1973
                                                                         1952
                                                                         1951
                                                                                1930
                                                                                1929
                                                                                       1908
                                                                                       1907
                                                                                              1886
                                                                                              1885
                                                                                                     1864
                                                                                                     1863
                                                                                                            1842
                                                                                                            1841
                                                                                                                   1820
                                                                                                                   1819
                                                                                                                          1798
                                                                                                                          1797
                                                                                                                                 1776
                                                                                                                                 1775
                                                                                                                                        1754
                                                                                                                                        1753
                                                                                                                                                  YouTube on any given
                                                                                                                                               1732
                                                                                                                                               1731

                                                                                                                                                  day is staggering.
                                                    2016   1994   1972   1950   1928   1906   1884   1862   1840   1818   1796   1774   1752   1730
                                                    2015   1993   1971   1949   1927   1905   1883   1861   1839   1817   1795   1773   1751   1729

                                                                  144,155
                                                    2014   1992   1970   1948   1926   1904   1882   1860   1838   1816   1794   1772   1750   1728

      Combined running                              2013
                                                    2012
                                                           1991
                                                           1990
                                                                  1969
                                                                  1968
                                                                         1947
                                                                         1946
                                                                                1925
                                                                                1924
                                                                                       1903
                                                                                       1902
                                                                                              1881
                                                                                              1880
                                                                                                     1859
                                                                                                     1858
                                                                                                            1837
                                                                                                            1836
                                                                                                                   1815
                                                                                                                   1814
                                                                                                                          1793
                                                                                                                          1792
                                                                                                                                 1771
                                                                                                                                 1770
                                                                                                                                        1749
                                                                                                                                        1748
                                                                                                                                               1727
                                                                                                                                               1726

         time of videos
                                                    2011
                                                    2010
                                                    2009
                                                    2008
                                                           1989
                                                           1988
                                                           1987
                                                           1986
                                                                  1967
                                                                  1966
                                                                  1965
                                                                  1964
                                                                         1945
                                                                         1944
                                                                         1943
                                                                         1942
                                                                                1923
                                                                                1922
                                                                                1921
                                                                                1920
                                                                                       1901
                                                                                       1900
                                                                                       1899
                                                                                       1898
                                                                                              1879
                                                                                              1878
                                                                                              1877
                                                                                              1876
                                                                                                     1857
                                                                                                     1856
                                                                                                     1855
                                                                                                     1854
                                                                                                            1835
                                                                                                            1834
                                                                                                            1833
                                                                                                            1832
                                                                                                                   1813
                                                                                                                   1812
                                                                                                                   1811
                                                                                                                   1810
                                                                                                                          1791
                                                                                                                          1790
                                                                                                                          1789
                                                                                                                          1788
                                                                                                                                 1769
                                                                                                                                 1768
                                                                                                                                 1767
                                                                                                                                 1766
                                                                                                                                        1747
                                                                                                                                        1746
                                                                                                                                        1745
                                                                                                                                        1744
                                                                                                                                                  If a day’s clips were
                                                                                                                                               1725
                                                                                                                                               1724
                                                                                                                                               1723
                                                                                                                                               1722

                                                                                                                                                  watched back to
                                                    2007   1985   1963   1941   1919   1897   1875   1853   1831   1809   1787   1765   1743   1721

     watched every day**
                                                    2006   1984   1962   1940   1918   1896   1874   1852   1830   1808   1786   1764   1742   1720

                                                                                YEARS
                                                    2005   1983   1961   1939   1917   1895   1873   1851   1829   1807   1785   1763   1741   1719
                                                    2004   1982   1960   1938   1916   1894   1872   1850   1828   1806   1784   1762   1740   1718
                                                    2003   1981   1959   1937   1915   1893   1871   1849   1827   1805   1783   1761   1739   1717

                                                                                                                                                  back, it would take
                                                    2002   1980   1958   1936   1914   1892   1870   1848   1826   1804   1782   1760   1738
                                                    2001   1979   1957   1935   1913   1891   1869   1847   1825   1803   1781   1759   1737
                                                    2000   1978   1956   1934   1912   1890   1868   1846   1824   1802   1780   1758   1736
                                                    1999   1977   1955   1933   1911   1889   1867   1845   1823   1801   1779   1757   1735

                                                                                                                                                  150 millennia (not
                                                    1998   1976   1954   1932   1910   1888   1866   1844   1822   1800   1778   1756   1734
                                                    1997   1975   1953   1931   1909   1887   1865   1843   1821   1799   1777   1755   1733

                                                                                                                                                  millennials!) to go
 70 million                                                       Total watch time of
                                                                  videos created in                                                               through them.
             HOURS                                                YouTube Spaces**

              Views of
            “Despacito”                         5.24
            on YouTube**                        BILLION

Sources: * The Wall Street Journal, “YouTube Tops 1 Billion Hours of Video a Day,
on Pace to Eclipse TV,” Feb 27, 2017; ** YouTube; “Despacito” view count as of
June 19, 2018; eMarketer calculations
BRAND SAFETY UNDER THREAT                                    The core issues that these platforms have faced are
                                                              different, but they share something in common: They
                                                              threaten the image the companies have tried to cultivate
In early 2017, YouTube found itself grappling with a
                                                              as spaces in which average citizens can speak their
flurry of issues that threatened its image as a brand-        minds, and marketers can reach vast numbers of people.
safe haven for video and display advertising. In
February, PewDiePie—at the time the YouTuber with             There’s another common thread throughout these brand
the most subscribers—posted anti-Semitic videos               safety issues. Despite actual and threatened boycotts,
on his channel. A month later, YouTube inadvertently          public outcries, testimony before the US Congress and
                                                              UK Parliament, and a general feeling of unease with how
ran ads from major companies next to videos
                                                              these platforms have managed—or even accepted—their
supporting terrorism.                                         roles in the digital media ecosystem, their businesses
                                                              have flourished while they faced serious existential
YouTube responded quickly to these crises by severing
                                                              threats. There’s no guarantee that business success will
ties with PewDiePie, removing the offensive videos and
                                                              continue, but if the past 15 months are any indication,
apologizing to marketers. However, these measures
                                                              YouTube, Facebook and Twitter have proven, if nothing
did not stop major brands, including GlaxoSmithKline,
                                                              else, that they are resilient platforms that deliver value to
Johnson & Johnson, Enterprise, AT&T and Verizon, from
                                                              users and advertisers alike.
pulling their ads from the platform, at least temporarily.
The backlash gathered steam throughout the first quarter
of last year, and soon hundreds of companies were
pulling back from YouTube. In late March 2017, an analyst      YOUTUBE
at Nomura Instinet estimated that the boycott would cost
Google up to $750 million.                                    Addressing a capacity crowd at YouTube’s annual
                                                              Brandcast event on May 3, 2018, CEO Susan Wojcicki
Over the course of the year, YouTube continued to take
                                                              acknowledged the company’s struggles with brand
steps to prevent brand safety lapses, and the issue died
down. By October, a Credit Suisse report noted that most      safety over the past year.
advertisers had returned to YouTube, and that the issues
had not caused Google to lose any business.                   “With openness also come challenges, as some have
                                                              tried to take advantage of our services,” she said. “There
Other brand safety issues followed, however, and again        isn’t a playbook for how open platforms operate at our
they were met by boycotts or threats from advertisers. At     scale. But the way I think about it is, it’s critical that we
its May 2018 Digital Content NewFronts presentation to        are on the right side of history.”
advertisers, YouTube again found itself on the defensive,
as it had a year earlier. In Q2 2018, the company released    It was the second year in a row Wojcicki was compelled
its first-ever Community Guidelines Enforcement report,       to bring up a topic she’d likely rather avoid. In May 2017,
designed to provide transparency into its video policing      after some brands had started boycotting YouTube over
efforts and reassure advertisers that it is working hard to   the inadvertent placement of their ads next to offensive
avert further failures.                                       videos, Wojcicki apologized to Brandcast attendees.

During the same time span, Facebook and Twitter also          “The last couple weeks have been challenging for some
grappled with their share of issues around data security      of you,” she said at the event, which is designed to
and brand safety. Starting in late 2016, both companies       showcase content for advertisers. “I want you to know
were heavily scrutinized for their purported roles in         that we have taken your feedback to heart. We work hard
spreading fake news and potentially influencing the US        every day to earn our advertisers’ and agencies’ trust. We
presidential election. Then, in early 2018, Facebook was      apologize for letting some of you down. We can, and we
rocked by the Cambridge Analytica scandal, in which the       will, do better.”
UK-based data firm with ties to the Trump campaign was
                                                              The resurgence of the brand safety issue belies the steps
found to have misused data from as many as 87 million
                                                              YouTube has taken to shield its platform against content
Facebook users in the context of the 2016 election.
                                                              that violates its terms of service. Over the past year,
                                                              the company has hired as many as 10,000 staffers to
                                                              monitor content, and invested in artificial intelligence (AI)

    POLICING VIDEO CONTENT ON YOUTUBE, FACEBOOK AND TWITTER                        ©2018 EMARKETER INC. ALL RIGHTS RESERVED   4
technology to identify and block potentially problematic                   Share of YouTube Videos Worldwide that Are Flagged
videos. It has also lived up to its pledge to be more                      by Humans, by Reason for Flagging, Q4 2017
transparent, launching the first of a series of reports in                 % of total
April 2018 that shed light on its policing efforts.                        Sexual                                                                 30.1%

                                                                           Spam or misleading                                                    26.4%
YouTube removed 8.3 million videos in Q4 2017, according
                                                                           Hateful or abusive                       15.6%
to the YouTube Community Guidelines Enforcement
report, which the company said it would issue quarterly                    Violent or repulsive                13.5%

starting in April. More than 80% of those videos were                                          7.6%     Harmful or dangerous acts
flagged by the platform’s automated systems, while                                      5.2%    Child abuse
13.7% were flagged by an “individual trusted flagger.”
                                                                               1.6%    Promotes terrorism
Average users accounted for just under 5% of flags,
and NGOs and government agencies made up less than                         Note: total human flagged videos=9.3 million; a single video may be flagged
                                                                           multiple times and for different reasons; flagging a video does not
1% each.                                                                   necessarily result in it being removed
                                                                           Source: YouTube, "YouTube Community Guidelines Enforcement," April 23,
                                                                           2018
                                                                           237492                                                     www.eMarketer.com
Number of YouTube Videos Removed Worldwide, by
Flagger Type, Q4 2017                                                      Over three-quarters of videos removed by YouTube in Q4
Automated flagging                                                         2017 were not viewed at all before being blocked, while
                                                               6,685,731   the remainder received some number of views.
Individual trusted flagger
            1,131,962
                                                                           Share of YouTube Videos Worldwide that Are
User
                                                                           Removed Before vs. After Receiving Any Views,
    402,335                                                                Q4 2017
NGO                                                                        % of total
 63,938
Government agency
73                                                                                              After
                                                                                                24.1%
Note: total videos removed=8.3 million
Source: YouTube, "YouTube Community Guidelines Enforcement," April 23,
2018
237490                                               www.eMarketer.com
                                                                                                               Before
Of the videos blocked by humans, the largest percentage                                                        75.9%
were flagged for sexual content, followed by spam or
misleading content. Other videos were flagged because
                                                                           Note: total videos removed=8.3 million
they were considered hateful or violent, or because                        Source: YouTube, "YouTube Community Guidelines Enforcement," April 23,
they depicted harmful or dangerous acts, or child abuse.                   2018
                                                                           237491                                                     www.eMarketer.com
Videos that promote terrorism made up only 1.6% of
flags, despite the disproportionate attention this category                Although YouTube did not provide details of how this
received in some of YouTube’s most publicized brand                        metric may have shifted over time, there are indications
safety issues.                                                             that the company’s machine learning processes are
                                                                           getting better and faster at blocking videos before they’re
                                                                           seen by large numbers of users. In Q1 2018, more than
                                                                           half of the clips taken down for depictions of violent
                                                                           extremism were blocked before they were seen by 10
                                                                           or more viewers. By comparison, in Q1 2017 the vast
                                                                           majority of such videos were viewed by at least 100
                                                                           people before being removed.

                                                                           Industry executives are generally reacting positively to
                                                                           YouTube’s policing efforts, as well as the transparency
                                                                           the company has shown by publishing its Community
                                                                           Guidelines Enforcement report.

     POLICING VIDEO CONTENT ON YOUTUBE, FACEBOOK AND TWITTER                                          ©2018 EMARKETER INC. ALL RIGHTS RESERVED      5
“YouTube has done a really good job of cleaning out             US YouTube Net Video Ad Revenues, 2016-2020
the content that really shouldn’t be on the platform at         billions, % of YouTube revenues and % of US video ad
all, or shouldn’t be carrying ads,” said Mike Henry, CEO        spending
                                                                                                                                      $3.88
of advertising analytics firm OpenSlate. “And I think
                                                                                                                    $3.57
that’s really important because the issue, as it started
                                                                   74.0%          74.0%             $3.23
in February of last year, was about brand safety. While
acknowledging that even their system can’t be perfect on                                            73.0%           72.0%             71.0%
                                                                                   $2.87
that front, they have done all they can to clean it up.”           $2.16

Others say recent steps are positive, but that YouTube
needs to do more.

“It’s a good first step,” said Matthew Fanelli, senior             20.0%          19.7%             18.1%           16.8%             16.0%
vice president at MNI Targeted Media. “The curtain has
been opened about a foot, and what people really want              2016            2017              2018            2019             2020
is to have it open 6 feet. They want to know YouTube is           YouTube net video ad revenues
excluding all the explicit stuff, but they’re also saying, ‘I     % of YouTube revenues      % of US video ad spending
want a purview, and I want a look into every place that         Note: net ad revenues after company pays traffic acquisition costs (TAC)
                                                                and content acquisition costs (CAC) to partner sites
I’m going to be.’ That’s the goal of where marketers want       Source: company reports; eMarketer, March 2018
to get to.”                                                     236044                                                      www.eMarketer.com

                                                                Although our estimates of YouTube revenues themselves
Even as YouTube has grappled with brand safety
                                                                haven’t changed, we made a downward revision in the
challenges, the company’s business results have
                                                                company’s share of the US video ad pie. We now expect
been healthy.
                                                                this figure to drop from 18.1% in 2018 to 16% in 2020.
eMarketer’s March 2018 forecast of US YouTube net video         In our September forecast, we had projected YouTube’s
ad revenues was unchanged from the previous version in          market share to remain constant in the range of 20%
September 2017. We expect the platform to reach $3.88           to 22% for the entire forecast period. The reasons for
billion in US video advertising in 2020, up from $3.23          the change are simple: Overall video ad spending has
billion in 2018. Further, we expect video’s percentage of       increased faster than we expected, and the market has
overall YouTube revenues to decrease slightly in that same      grown more competitive, with more players vying for
time frame, from 73% in 2018 to 71% in 2020. This is            video ad dollars.
because of the prevalence of overlays and other nonvideo
formats on the service.

    POLICING VIDEO CONTENT ON YOUTUBE, FACEBOOK AND TWITTER                                ©2018 EMARKETER INC. ALL RIGHTS RESERVED      6
YouTube’s viewer numbers have also continued to                            US Companies Using YouTube for Marketing
flourish despite the company’s brand safety skirmishes.                    Purposes, 2015-2019
Its worldwide audience is expected to reach 1.86 billion                   % of total
                                                                                                                                           51.9%
in 2021, up from 1.58 billion in 2018. As these numbers                                                       48.2%
                                                                                                                             50.2%
grow by single-digit percentages in the next three years,                                      45.6%
                                                                                42.7%
they will also make up a slightly larger share of total video
viewers, indicating that YouTube will not only grow its
ranks around the world but also capture a larger market
share as it goes.

YouTube Viewers and Penetration Worldwide,
2016-2021
billions, % change and % of digital video viewers
                                                                 1.86
                                                    1.78
                                        1.68                                        2015        2016          2017           2018          2019
                            1.58
               1.47                                                        Note: companies with 100+ employees; includes use of any of the
   1.35                                                                    proprietary public-facing tools on YouTube for marketing purposes; includes
                                                                           organic and paid functions
                                                                           Source: eMarketer, Nov 2017
  66.3%       66.2%        66.4%       66.5%       66.6%        66.8%      231896                                                    www.eMarketer.com

                                                                           These indicators point to YouTube’s resilience in the face
                                                                           of the brand safety challenges it has faced since at least
                                                                           early 2017. Despite predictions from at least one analyst
  13.0%
               9.2%         7.5%        6.6%        5.6%        4.9%
                                                                           at that time that ad boycotts could cost parent company
                                                                           Google up to $750 million, the company has seemingly
   2016        2017        2018         2019        2020        2021       not missed a beat.
  YouTube viewers          % change         % of digital video viewers
                                                                           Google’s Q1 2018 earnings rose to $31.15 billion, a 25.8%
Note: individuals of any age who watch video via YouTube app or website
at least once per month                                                    increase over the Q1 2017 total of $24.75 billion. Similarly,
Source: eMarketer, Jan 2018
                                                                           its closing share price on May 1, 2018, was $1,060.32,
234682                                                 www.eMarketer.com
                                                                           which represented a 33.1% increase over the January 1,
YouTube also shows no sign of slowing down when it                         2017, closing of $796.79. Although Google does not break
comes to companies using the platform for marketing                        out YouTube results, eMarketer estimates that YouTube’s
purposes, including ads and organic posts. Our November                    net worldwide ad revenues totaled $7.80 billion in 2017, a
2017 forecast indicated that 51.9% of US companies                         39.8% jump over the 2016 figure of $5.58 billion. These
would use YouTube for marketing in 2019, up from 48.2%                     are net figures after subtracting traffic acquisition and
in 2017. The forecast occurred long after a wave of brand                  content acquisition costs to partner sites.
safety issues on YouTube in H1 2017.

                                                                           YouTube Net Ad Revenues Worldwide, US vs. Non-US,
                                                                           2016-2020
                                                                           billions and % of total
                                                                                                           2016      2017    2018      2019       2020
                                                                           US                             $2.92      $3.88   $4.43    $4.96       $5.47
                                                                           —% of worldwide total          52.3%    49.7%     48.5%    47.2%       46.5%
                                                                           Non-US                         $2.66      $3.93   $4.70    $5.54       $6.29
                                                                           —% of worldwide total          47.7%    50.3%     51.5%    52.8%       53.5%
                                                                           Worldwide                      $5.58    $7.80     $9.13 $10.50       $11.76
                                                                           Note: net ad revenues after company pays traffic acquisition costs (TAC)
                                                                           and content acquisition costs (CAC) to partner sites; includes banners, rich
                                                                           media, search and video ads
                                                                           Source: company reports; eMarketer, March 2018
                                                                           236043                                                    www.eMarketer.com

     POLICING VIDEO CONTENT ON YOUTUBE, FACEBOOK AND TWITTER                                        ©2018 EMARKETER INC. ALL RIGHTS RESERVED       7
YOUTUBE’S BRAND SAFETY CHALLENGES HAVE NOT AFFECTED BUSINESS RESULTS

          GOOGLE WORLDWIDE REVENUES
                      Q1 2017 – Q1 2018                          +25.8%
                          GOOGLE SHARE PRICES
                          Jan 1, 2017 – May 1, 2018              +33.1%
                                                                                                                                       Some marketers
                                                                                                                                       suspend YouTube
                      Top YouTuber PewDiePie dropped                                                                                   campaigns after
                      after posting anti-Semitic videos                                                                                ads run next to child        YouTube
                                                                                                 YouTube touts                         exploitation videos;         suspends ads
                                                                                                 “better detection                     YouTube takes down           on Logan Paul’s
                                  Brands ditch YouTube after ads                                                                       hundreds of                  channels after
                                  run next to objectionable content;                             and faster removal
                                                                                                 driven by machine                     accounts and                 vlogger posts
                                  analyst estimates boycott will cost                                                                  removes 150,000              footage of a
                                  Google $750 million                                            learning”
                                                                                                                                       videos                       suicide victim

   JAN          FEB         MAR          APR         MAY          JUN          JUL          AUG          SEP         OCT          NOV          DEC         JAN   FEB     MAR        APR
2017

                                                                                                                                                       2018

                                               YouTube raises                        Credit Suisse says ad                           YouTube again               CNN reports that
                                               thresholds for video                      suspensions had no                               raises video             YouTube ran ads
                                               monetization under                         effect on Google’s                            monetization              from hundreds of
                                               YouTube Partner                       business, and that most                         thresholds in an                brands next to
                                               Program (YPP)                            advertisers returned                        effort to ward off            extremist content
                                                                                                                                         “bad actors”

                                                                                                                                                      YouTube debuts quarterly
                                                                                                                                          Community Guidelines Enforcement
                                                                                                                                          report detailing its video policing efforts

   Source: Compiled by eMarketer from company reports and Business Insider, CNBC, Cnet, CNN, MarketWatch, The New York Times, Variety, The Wall Street Journal
While the YouTube figures are a relatively small portion      The first study focused on six areas of violative content:
of Google’s total revenues—which include search and           graphic violence, adult nudity/sexual nudity, terrorist
display advertising, and also ancillary sources such          propaganda, hate speech, spam and fake accounts. For
as devices—it’s notable that both YouTube and its             each of those content types, the report attempted to
parent company posted significant revenue increases           answer four questions:
during a year when they faced a battery of brand
safety challenges.                                            ■■   How prevalent are Community Standards violations
                                                                   on Facebook?
These positive results reflect YouTube’s enduring appeal
to marketers, according to Todd Krizelman, CEO and co-        ■■   How much content does the platform take action on?
founder of marketing analytics firm MediaRadar.               ■■   How much violating content does Facebook find before
                                                                   users report it?
“The moment the unsavoriness is discovered in the
press, the agency that represents the brand, or the           ■■   How quickly does the company take action
brands themselves, will immediately disavow their                  on violations?
relationship with any broadcaster or publisher that
exposed them to the liability,” Krizelman said. “What I       By far the most prevalent types of noncompliant content
think is interesting is how ephemeral their reaction is.      on Facebook are spam and fake accounts, which exceed
If someone is doing a large campaign and it turns out         other types of content by orders of magnitude. In Q1
someone catches unsavory video content, they will pull        2018, Facebook took action on 836.0 million instances
it, but then they’ll come back, sometimes within a week       of spam, up from 727.0 million in Q4 2017. Similarly,
or just a few days. Very few companies say, ‘You know         Facebook acted on 583.0 million cases of fake accounts
what? We’re really turned off by this forever and we’re       in Q1 2018, down from 694.0 million the previous quarter.
just going to stop working with you.’”
                                                              With a time span of only two quarters, and without much
To Krizelman’s point, companies that initially stepped back   context around the data, it’s difficult to put it into broader
from YouTube but eventually returned to the platform          perspective and see how these types of content, and
include Procter & Gamble, Ford Motor Co., PepsiCo, Hulu       Facebook’s response, may have evolved over time. It is
and Groupon, according to an article in Business Insider      also unclear why cases of spam increased while fake
on May 3, 2018.                                               accounts decreased in Q1 2018. But given the sheer
                                                              numbers of bogus accounts, flagging and taking them
                                                              down is a massive challenge for Facebook. As the study
                                                              indicates, fake accounts are “often the starting point for
 FACEBOOK                                                     other types of standards violations,” so keeping them in
                                                              check presumably helps stem the tide of other types of
In May 2018, Facebook published the Community                 problem content downstream.
Standards Enforcement Preliminary Report, the first
in what it says will be an ongoing series of reports          Number of Content Pieces that Violate Facebook
detailing its efforts to flag and block offensive content     Standards, by Violation Type, Q4 2017 & Q1 2018
                                                              millions
of all types: photos, videos, images and comments.
                                                                                                              Q4 2017              Q1 2018
The report covered the period from October 2017               Fake accounts                                     694.0               583.0
through March 2018, and future reports—which                  Spam                                              727.0               836.0
will be released periodically but not necessarily             Adult nudity and sexual activity                   21.0                21.0
                                                              Graphic violence*                                   1.2                 3.4
quarterly—will also allow readers to look back on
                                                              Hate speech*                                        1.6                 2.5
earlier data for comparison.
                                                              Terrorist propaganda*                               1.1                 1.9
                                                              Note: violating content on which Facebook took action (e.g., removing a
                                                              piece of content from Facebook, covering photos or videos that may be
                                                              disturbing to some audiences with a warning, disabling accounts); includes
                                                              posts, images, videos or comments; *increase is primarily due to
                                                              improvements in detection technology
                                                              Source: Facebook, "Community Standards Enforcement Report," May 15,
                                                              2018
                                                              238384                                                    www.eMarketer.com

    POLICING VIDEO CONTENT ON YOUTUBE, FACEBOOK AND TWITTER                             ©2018 EMARKETER INC. ALL RIGHTS RESERVED      9
The amount of content depicting adult nudity and sexual                     While these figures don’t specifically relate to video, Facebook’s
activity was constant during the study period, with 21.0                    decision to consolidate its premium video programming under
million pieces in each of the two quarters tracked. Content                 the Watch tab gives brand marketers reassurance that at least
featuring graphic violence, terrorist propaganda and hate                   some forms of video are shielded from the types of violations
speech was less prevalent, with numbers in the single-digit                 that can occur more easily with user-generated content,
millions, but all three of those categories saw significant                 including live streams via Facebook Live.
increases, with graphic violence instances nearly tripling
from 1.2 million in Q4 2017 to 3.4 million in Q1 2018.                      Facebook Watch launched in mid-2017 and is ramping up
                                                                            this year with entertainment shows featuring the likes of
Again, the data set doesn’t give enough context to draw                     Jada Pinkett Smith, and news programming under the
conclusions as to why some content types fluctuate more                     direction of the company’s head of news partnerships,
than others. A longer look back at this data might help                     former TV news anchor Campbell Brown.
explain, for example, if occurrences of hate speech have
increased as online discourse has grown more polarized                      “The more that you can curate, then the less the chances
in the US and elsewhere, but otherwise rationalizing the                    of things going wrong,” said Susan Schiekofer, chief digital
ups and downs in these categories is challenging at best.                   investment officer at GroupM. “Facebook is leaning in
                                                                            a big way into Watch. They’re working with partners.
What is clear from other data in the study, though, is that                 They’re renewing shows. That is a more brand-safe video
Facebook is making progress in some of the areas that                       environment for clients.”
saw the biggest increases in violative activity during the
study period. In Q1 of this year, the company flagged                       The challenges that Facebook has encountered since
85.6% of graphic violence instances before they were                        early 2017 include accusations of fake news, interference
reported by users, up from 71.6% the previous quarter. It                   in the 2016 election, instances of violent acts streamed
also increased the rate at which it flagged hate speech, to                 on Facebook Live and the Cambridge Analytica scandal.
38.0% from 23.6%.                                                           Despite these challenges, which affected average users
                                                                            and brand marketers alike, Facebook’s business did not
                                                                            suffer during this period.
Share of Violating Content that Are Flagged by
Facebook Before Reported by Users, by Violation
Type, Q4 2017 & Q1 2018                                                     Its Q1 2018 earnings totaled $11.97 billion, a 49.0%
% of total                                                                  increase from the Q1 2017 figure of $8.03 billion. Its
                                              Q4 2017           Q1 2018     closing share price on May 1, 2018, was $185.74, up
Spam                                           99.8%              99.7%     42.5% over the $130.32 closing on January 1, 2017.
Terrorist propaganda*                          96.9%              99.5%
Fake accounts                                  99.1%              98.5%     In addition to posting robust earnings and value to
Adult nudity and sexual activity*              94.4%              95.8%     shareholders during the period in question, Facebook also
Graphic violence*                              71.6%              85.6%     emerged unscathed from public campaigns such as the
Hate speech*                                   23.6%              38.0%
                                                                            #DeleteFacebook hashtag, which arose in the immediate
Note: read as 71.6% of content that violated graphic violence standards
and were acted on during Q4 2017 was flagged by Facebook before users       aftermath of the Cambridge Analytica crisis but never
reported it; violating content on which Facebook took action (e.g.,         gained enough momentum to make a serious dent in
removing a piece of content from Facebook, covering photos or videos that
may be disturbing to some audiences with a warning, disabling accounts);    user numbers.
includes posts, images, videos or comments; *increase due to improved
technology and processes to find and flag content before users report it
Source: Facebook, "Community Standards Enforcement Report," May 15,         “Amidst all this scrutiny, Facebook is still doing really
2018
238385                                                  www.eMarketer.com
                                                                            well,” said Serena Budhwani, account director at creative
                                                                            agency Sandbox. “They’ve seen ad spending go up
Clearly, Facebook has more work to do to bring those                        significantly on the platform, and they’re confident
figures up to the 90% range, as it has done with nudity,                    enough to move forward with the release of [a] dating
terrorist propaganda, spam and fake accounts. But the                       app. It’s not like people are leaving in droves.”
improvements in its early flagging of violence and hate
speech indicate that its algorithms are getting better at
recognizing those types of content. With hate speech in                     For more on Facebook’s struggles with data privacy and
particular, even recognizing it, or allowing people to repost               brand safety, see eMarketer’s June 2018 report, “Changes
an instance of it to make a counterargument, can present                    to Facebook Advertising After Cambridge Analytica: What’s
a huge challenge.                                                           Happening with Usage, Advertising and Data Privacy.”

     POLICING VIDEO CONTENT ON YOUTUBE, FACEBOOK AND TWITTER                                      ©2018 EMARKETER INC. ALL RIGHTS RESERVED   10
FACEBOOK'S BUSINESS SOLID DESPITE FAKE NEWS, CAMBRIDGE ANALYTICA SCANDAL

      FACEBOOK WORLDWIDE REVENUES
                    Q1 2017 – Q1 2018                          +49.0%
                    FACEBOOK SHARE PRICES
                      Jan 1, 2017 – May 1, 2018                +42.5%
                                                            Facebook says it will add                                  The New York Times reports that
                                                            3,000 workers to monitor and                               Cambridge Analytica improperly used
                                                            remove violative content                                   data from millions of Facebook users

   Facebook says it is using                                                                  Facebook launches                          Brands including Tesla
   artificial intelligence (AI) to flag                                                       Watch platform for                           and Mozilla pause their
   videos that violate its policies                                                           short series                                      Facebook activity

DEC      JAN         FEB       MAR APR                MAY         JUN         JUL       AUG         SEP         OCT        NOV           DEC      JAN    FEB     MAR APR      MAY
      2017

                                                                                                                                               2018

                 A Facebook user                                   Facebook announces                                        In testimony before the US Congress,
                posts live video of a                               monetization eligibility                                          Facebook CEO Mark Zuckerberg
              murder he committed;                                     standards aimed at                                          apologizes for data privacy scandal
              the company admits it                                 promoting brand safety
                needs “to do better”
                                                                           Facebook: We can’t stop                                                      Facebook releases first
                                                                              all live stream suicides                                                     Community Standards
                                                                                                                                                             Enforcement report

  Source: Compiled by eMarketer from company reports and AdNews, Bloomberg, NPR, New York Post, The New York Times, Reuters, US Senate
TWITTER                                                      When it comes to video content specifically, Twitter has
                                                              long restricted monetization to premium content under its
                                                              Amplify partner program, which it launched in 2013. The
Twitter’s challenge with policing video is less urgent
                                                              program ensures that video ads run only against vetted,
than YouTube’s or Facebook’s, because Twitter                 professional content from partners that include top news,
doesn’t directly monetize tweets via video ads.               sports and entertainment channels, such as Bloomberg,
However, brand safety is an ongoing concern for               the NBA and A&E.
Twitter given the plethora of trolls and bots on the
platform—and the potential for users to run afoul             The program has been a success for Twitter. Since early
                                                              2016, video has been the its largest revenue-generating
of company guidelines for tweeting or retweeting
                                                              ad format, and as of Q4 2017, more than half of its
offensive content.                                            business came from video ads. Video was also the
                                                              company’s fastest-growing ad format in Q1 2018, and it
In a briefing with reporters in May 2018, Twitter CEO Jack
                                                              has recently announced new video content partnerships
Dorsey said the company would double down on problem
                                                              and more ways users can incorporate video into
accounts by examining actions such as how often people
                                                              their tweets.
tweet about accounts that don’t follow them, or whether
they’ve confirmed their email address. According to           Despite Twitter’s success with video, some experts say
coverage of the meeting in Reuters, tweets from suspect       the company is playing it safe by restricting monetization
accounts will appear lower in some areas of the service,      to professional content.
such as search results or replies, even if the tweets
themselves have not been found to violate rules.              “Twitter hasn’t solved the problem. They’ve essentially
                                                              just shrunk their universe to a controlled environment,”
“We want to take the burden of the work off the people        said Chris Innes, COO at ad tech firm SteelHouse. “That
receiving the abuse or the harassment,” Dorsey said,          may work for a short period of time, but they have to
acknowledging that past efforts to fight abuse “felt like     build a real solution. At some point they’re going to have
whack-a-mole.”                                                to open up to every other SMB [small and medium-sized
                                                              business] advertiser.”
Part of Twitter’s effort to improve brand safety involves
combatting trolls “that distort and detract from the public   Although Amplify is theoretically open to any advertiser
conversation on Twitter,” according to a May 15, 2018,        that abides by Twitter’s terms of service, the program
blog post titled “Serving Healthy Conversation.” The          caters mainly to national brands that are looking to attach
post indicated that fewer than 1% of Twitter accounts         themselves to premium content from publishing partners
are reported for abuse, but that much of the reported         including Bloomberg Television, the Discovery Channel,
behavior doesn’t violate company standards. Still,            the NFL and the FIFA World Cup. Advertisers that have
accounts that get flagged for violations, whether they’ve     sponsored NFL programming through Twitter Amplify
committed them or not, can have a disproportionate and        include McDonald’s, Verizon and Microsoft.
negative impact on people’s experience on Twitter.
                                                              Like YouTube and Facebook, Twitter has posted strong
The company said it would start considering a wide            results since early 2017, indicating that its brand safety
variety of signals to deprioritize potentially problematic    challenges and relatively conservative approach to video
accounts before they get reported by other users.             monetization have not hurt its bottom line or its valuation.
                                                              In Q1 2018, Twitter posted earnings of $665 million, or
“In our early testing in markets around the world, we’ve
                                                              21.3% better than its Q1 2017 figure of $548 million. In
already seen this new approach have a positive impact,
                                                              that time fame, its share price has risen by 93.2%,
resulting in a 4% drop in abuse reports from search
                                                              closing at $34.04 on May 1, 2018, up from $17.62 on
and 8% fewer abuse reports from conversations,” the
                                                              January 1, 2017.
company wrote in the blog post. “That means fewer
people are seeing tweets that disrupt their experience
on Twitter.”

    POLICING VIDEO CONTENT ON YOUTUBE, FACEBOOK AND TWITTER                       ©2018 EMARKETER INC. ALL RIGHTS RESERVED   12
TWITTER'S BOTTOM LINE UNHURT BY BRAND SAFETY CHALLENGES

          TWITTER WORLDWIDE REVENUES
                       Q1 2017 – Q1 2018                          +21.3%
                         TWITTER SHARE PRICES
                          Jan 1, 2017 – May 1, 2018               +93.2%                                                                                             Twitter unveils new
                                                                                                      Twitter updates                                                     election security
                                                                                                     its rules governing                                               measures ahead of
                                                                                                     prohibited content                                                    2018 midterms
         Twitter starts                      Twitter suspends account of                                                            President Trump
         testing pre-roll                         neo-Nazi site Daily Stormer                                                       retweets incendiary                   A federal judge
         video ads with                       after white supremacist rally in                                                      anti-Muslim videos                        rules Trump's
       Dentsu, stressing                                   Charlottesville, Va.                                                     from controversial                   blocking of Twitter
          its brand-safe                                                                                                            group                               users who disagree
         premium video                                                                                                                                                          with him is
                 content                                                                                                                                                   unconstitutional

       JAN      FEB        MAR          APR         MAY          JUN         JUL         AUG          SEP         OCT         NOV          DEC          JAN      FEB      MAR      APR     MAY
2017

                                                                                                                                                     2018

                               A couple in Finland                             Twitter issues                           Twitter launches                       Twitter says more
                       accidentally live streams their                             update of its                        an alpha test of a                    than half its business
                        death on Twitter's Periscope                          efforts to combat                         programmatic                            came from video in
                                       video platform                         misinformation in                         advertising and                                     Q4 2017
                                                                               the wake of the                          real-time bidding
                                                                              2016 presidential                         (RTB) platform
                                                                                        election
                                                                                                                        In congressional testimony,
                                                                                                                        Twitter says it is “determined to meet”
                                                                                                                        the challenge of abuse on its platform

   Source: Compiled by eMarketer from company reports and AdExchanger, Business Insider, The Daily Mail, NPR, The New York Times, Recode, The Hill
BRAND SAFETY: A                                                            An April 2018 Netflix statement responding to the most
                                                                            recent case of YouTube inadvertently placing ads next
 SHARED RESPONSIBILITY                                                      to violative content alluded to this shared responsibility:
                                                                            “We employ numerous filters to avoid having our content
As YouTube and social media companies grapple with                          appear on sites or videos that clearly don’t represent us or
buttressing their platforms against abuse and other                         our values,” read the statement. “While that works well
forms of problematic content, a marketer-side study                         most of the time, there are a small number of instances
illustrates the scope of the challenge from a different                     where it doesn’t and we are working closely with Google
                                                                            to close that gap further.”
vantage point.
                                                                            The statement refers to a joint effort by Netflix and
A November 2017 GumGum survey conducted by
                                                                            Google and implicitly acknowledges that perfection is
Custom indicated that two-thirds of US marketers have
                                                                            not a realistic goal. Rather, the companies are working
had their brands, or their clients’ brands, exposed to brand
                                                                            to “close the gap further,” a tacit recognition that the
safety issues. For 43% of respondents, these issues have
                                                                            best anyone can hope is to minimize—not eliminate—
occurred a few times, while 9% have experienced them
                                                                            brand risk.
regularly and 15% once. Only 33% of participants said
they’d never had these issues.
                                                                            Andrea Ching, CMO at OpenSlate, also drove home the
                                                                            point about brands’ role in ensuring safety.
Frequency with Which Their Brand* Has Been
Exposed to Brand Safety Issues According to US                              “It’s critically important that brands lean into
Marketers, Nov 2017
% of respondents
                                                                            understanding their own suitability guidelines and make
                                                                            sure they have a strategy in place that where they
                                       Regularly                            advertise meets their standards,” she said. “Brands and
                                       9%                                   marketers have to make sure they have the types of
                    Never
                    33%                                                     partners that can help them deliver on those standards
                                                                            across all these major platforms at scale.”
                                             A few times
                                             43%
                        Once
                        15%
                                                                             KEY TAKEAWAYS FOR MARKETERS
Note: includes agencies, brands and digital publishers; *or their clients   ■■   The risk to brands of having their content placed
Source: GumGum, "The New Brand Safety Crisis" conducted by Custom (a
Digiday Media Agency), Jan 23, 2018                                              next to offensive content is real and should not be
235013                                                  www.eMarketer.com        minimized. Brands live and die by their reputations,
While it’s anyone’s guess whether the level of scrutiny                          so they are right to jealously guard their public image
that’s been placed on video and social media platforms                           across traditional, digital and social media.
will eventually result in more US government regulation,                    ■■   YouTube, Facebook and Twitter have all stepped
some industry executives anticipate a tighter regulatory                         up their policing efforts, and the communication
framework, which could lead to more stability and trust in                       strategies around them. These platforms will continue
the platforms.                                                                   to hire more staff as new situations arise and, more
                                                                                 to the point, refine their machine learning algorithms
Michael Priem, CEO of Modern Impact, said: “We
                                                                                 to better catch violative videos and other pieces of
inevitably are going to see a bunch of new regulations,
                                                                                 content before they are seen. Nevertheless, none will
and it’s been an ongoing idea. As we’ve evolved and
                                                                                 ever be 100% safe while they continue to host user-
become more sophisticated, we need to have guidelines.
                                                                                 generated media.
I don’t think that regulations, in nature, always mean
they’re going to be bad or negative.”                                       ■■   Brand safety issues have had little or no apparent
                                                                                 effect on top-line revenues or valuations at the three
And even though most of the media coverage around                                companies in question. Their business results have not
brand safety and other issues has focused on the                                 seemed to suffer as a result of the many challenges
platforms themselves, marketers also play a part in                              they’ve faced since early 2017.
ensuring that brands are kept safe in the digital jungle.

     POLICING VIDEO CONTENT ON YOUTUBE, FACEBOOK AND TWITTER                                       ©2018 EMARKETER INC. ALL RIGHTS RESERVED   14
■■   Marketers continue to see value in these platforms,        Matthew Fanelli
     which are the core of most digital video advertising       Senior Vice President
     strategies. For better or worse, the duopoly of Google     MNI Targeted Media
     and Facebook continues to thrive. Still, marketers need    Interview conducted on May 21, 2018

     to continue to monitor usage and consumer attitudes
     toward these platforms, and be prepared to react           Christopher Hansen
     quickly to any changes.                                    Chief Product Officer
                                                                IgnitionOne
■■   Although the onus is on media platforms to provide         Interview conducted on May 9, 2018
     brand-safe environments, advertisers also have a
     role to play in monitoring where and how their brand       Mike Henry
     messages appear.                                           CEO
                                                                OpenSlate
■■   While the business impact of brand safety issues
                                                                Interview conducted on May 10, 2018
     appears to be limited so far, caution is in order for
     marketers. New issues have cropped up in Q2 2018
                                                                Chris Innes
     that could affect companies’ bottom lines and share
                                                                COO
     prices in upcoming earnings reports, and there’s no
                                                                SteelHouse
     telling what could happen if these issues accelerate
                                                                Interview conducted on May 4, 2018
     or new ones arise. And even if there’s no short-term
     impact on business results, the cumulative effect of
                                                                Todd Krizelman
     brand safety challenges could erode trust in platforms
                                                                CEO
     and drive down ad spending.
                                                                MediaRadar
                                                                Interview conducted on May 16, 2018

 EMARKETER INTERVIEWS                                           Dino Myers-Lamptey
                                                                UK Managing Director
The Next Battle for Brand Safety Is in the                      MullenLowe Mediahub
Comment Section                                                 Interview conducted on May 8, 2018

                 Susan Schiekofer
                                                                Michael Priem
                 Chief Digital Investment Officer
                                                                CEO
                 GroupM
                                                                Modern Impact
                 Interview conducted on May 2, 2018
                                                                Interview conducted on May 9, 2018

Are Brands Shifting Ad Dollars After
Cambridge Analytica?                                            Tuomo Riekki
                                                                CTO and Founder
                Angela Yang                                     Smartly.io
                 Director, Connections                          Interview conducted on May 4, 2018
                 T3
                 Interview conducted on May 8, 2018
                                                                Victor Wong
                                                                CEO
                 Serena Budhwani                                Thunder
                 Account Director                               Interview conducted on May 10, 2018
                 Sandbox
                 Interview conducted on May 7, 2018

                Andrea Ching
                 CMO
                 OpenSlate
                 Interview conducted on May 10, 2018

      POLICING VIDEO CONTENT ON YOUTUBE, FACEBOOK AND TWITTER           ©2018 EMARKETER INC. ALL RIGHTS RESERVED   15
READ NEXT                                                    EDITORIAL AND
                                                              PRODUCTION CONTRIBUTORS
Changes to Facebook Advertising After Cambridge
Analytica: What’s Happening with Usage, Advertising          Michael Balletti        Copy Editor
and Data Privacy                                             Katie Hamblin           Chart Editorial Manager
Facebook Advertising 2018: eMarketer Tackles Big             Dana Hill               Director of Production
Questions on Usage, Privacy and Ad Targeting in Wake         Ann Marie Kerwin        Executive Editor, Content Strategy
of Cambridge Analytica                                       Stephanie Meyer         Senior Production Artist
Digital Video Advertising Best Practices 2018:               Heather Price           Managing Editor, Content
Connecting the Dots Across Screens and Platforms             Erica Walker            Copy Editor
Global Digital Video Viewers: eMarketer’s Estimates
and Forecast for 2016—2021, with YouTube and
Mobile Video Numbers
Q2 2018 Digital Video Trends: Monetization, Audience,
Platforms and Content

 SOURCES
AdExchanger
AdNews
Bloomberg
Business Insider
CNBC
CNET
CNN
Facebook
Google
GumGum
MarketWatch
New York Post
National Public Radio (NPR)
Recode
Reuters
The Daily Mail
The Hill
The New York Times
The Wall Street Journal
Twitter
US Senate
Variety
YouTube

   POLICING VIDEO CONTENT ON YOUTUBE, FACEBOOK AND TWITTER                      ©2018 EMARKETER INC. ALL RIGHTS RESERVED   16
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